UCB3 Final Exam Flashcards
6Ciadlini - Liking
+ 5 examples of causes
we are more prone to be influences by people or brands we like - transference of affection (cause by: physical attraction & similarity & cooperation/reciprocity & flattery & repetition/mere exposure)
6Cialdini - Authority
More likely to follow the lead of a credible expert or authority
6Cialdini - Commitment & Consistency
3 instances when most effective?
once we have committed & or started doing something we are more inclined to go through it. Most effective when voluntary & active and public
6Cialdini - Reciprocity
we feel obliged to give back to others or accept a request after someone has given something to us
6Cialdini - Scarcity
more attractive when limited availability or when possibility to lose the opportunity to acquire them
6Cialdini - Social Proof
we look to the actions and behaviors of others to determine our own & stronger during uncertainty and similarity to us
anchoring
relying on a previous information to evaluate another
availability heuristic
judging frequency and probability of an event by how easily we can recall examples
Blindspot
Being able to recognize biases in others but not yourself
Brain fatigue
when tired & the brain resorts to ‘energy saving mode’
Certainty effect
When sure outcomes are weighted disproportionately more than they should
Choice architecture
organization to influence decision-making
classical conditioning
a reflexive or automatic learning in which a stimulus gets to evoke a response
clustering illusion
believing that inevitable clusters in random distributions represent a pattern
Cognitive dissonance
Mental discomfort experienced when we hold two contradictory ‘truths’ or when actions don’t match beliefs
confirmation bias
going for information that confirms pre-existing beliefs while avoiding non-conforming ones
conjunction fallacy
faulty reasoning inferring that a conjunction is more probably or likely than one of its elements
Consumer Habits
are purchase and consumption behaviors in daily live which are often repetitive and automative & driven by environmental cues
contrast principle
we tend to consider contrasting items as more different than they are
decoy effect
when we change our preference between 2 options when presented with a 3rd & less attractive option which makes others ‘better’.
Digital amnesia or google effect
The internet has become our external hard drive & so we remember less or differently
diminishing sensitivity
as numbers go up & we are less sensitive to the impact of its variations
disjunction fallacy
estimating disjunctive probability to be less probable than at least one only
EAST - Attractive
manage salience & use scarcity & make it fun & employ rewards
EAST - Easy
Simple messages & less options & use defaults & reduce or employ friction
EAST - Social
use social proof & highlight what the reference group is doing & encourage public commitment
EAST - Timely
do it when they are most receptive & help them plan in advance & temporal discounting
EAST Model?
Easy & Timely & Social & Attractive
Endowment effect
People attribute more value to things merely because they own them or think about owning them. Ownership increases subjective value -> increased by touch
Endowment progress effect
people are motivated to complete a journey or finish a task when given an artificial headstart (ex: loyalty card with initial completes)
false consensus
overestimating the degree to which others agree with us
Flynn effect
the consistent rise in IQ observed over the past century
Fresh start effect
people are more likely to pursue goals and engage in behaviors at certain temporal landmarks
Friction
obstacle or difficulty that increases effort and time required for a task -> decrease in likelihood
Fundamental Attribution Error
Tendency to overconsider personality-based explanations for other’s behavior rather than situational factors
gambler’s fallacy
believing that the probability of a random event is influenced by previous events
Habit Loop - Trigger
The cue or reminder that signals us into the routine
Habit Loop - External trigger
They come from outstide and the information for what to do next is within the trigger.
Habit Loop - Internal trigger
The information for what to do next is not in the trigger & it is informed through the associations in your memory.
Habit loop - Reward
The feedback that tells your brain the rootine is good - either getting something positive or avoiding something negative
Habit Loop - routine
The behavior that follows the trigger - either physical & mental or emotional
Habits
Automatic and rigid patterns of behavior in specific that you first learn through effort and repetition
halo effect
tendency to generate an impression of something based on other people or things & it ‘reflects’ on it
hindsight bias
or the “we knew it all along” effect - to believe an even was predictable after the fact
How do our decisions change when we are distracted?
We are more goal-oriented and price insensitive
How to change a habit?
Either : Eliminate the rigger / Insert a new routine / Induce friction between trigger and routine
How to create a habit?
TAM - Trigger & Ability & Motivation
illusion of control
tendency to overestimate our ability to control events and our influence over them
implementation intentions
strategy such as “After i do X & I will do Y to Z” & helping in behavior creation and modification.
insensitivity to small sample
when we tend to overestimate the reliability of small samples & when extreme results are more likely in small samples.
invisible correlations
failing to see existing correlations
Keystone habits
Habits that have the power to create a chain reaction of change
Labor perception bias
Tendency to think it will take more time to get something more special
Loss aversion
Loss and gains are valued differently and losses cause greater emotional impact. People are more sensitive to loss.
mental accounting
we place our money mentally in different accounts
mere exposure effect
the more we are exposed to something & the more familiar it feels & the more we like it
narcisstic consumers’ means…
Needing to feel special and appreciated & wanting exclusivity & early access and special offers & having secret knowledge & customizable or personalized products & and postable moments/products
narrative fallacy
when forcing a logical link to explain facts. Stories are also much more memorable than numbers
Neophilia
The desire for novel experience & which catches our attention more
Non consistent risk preference
we tend to be risk averse in gains but risk seeking in losses
Nucleus accumbens
Dopamine hit that is activated when we crave something
Nudge
Building a choice architecture that makes it easy for people to make a decision
operant conditioning
a learning process through which the strenght of a voluntary behavior is modified by reward or punishment
outcome bias
tendency to judge a past decision by its outcome instead of the process back then
Paradox of choice
too many options can make decisions difficult & decrease satisfaction and increase regret -> sometimes no decision
Pluralistic ignorance
when a majority group privately reject a norm and assume others accept and abide by it
Possibility effect
when highly unlikely outcomes are weighted disproportionately more than they should
Prospect theory
Theory of decision making under risk and uncertainty where people make economic choices based on subjective value & and using heuristics and biases
Psychologic uncomfortableness
when we feel we are in debt to someone and we want to settle the score
Psychological reactance
Motivation to react when perceived threat or removal of behavior freedom
randomness misunderstanding
seeing patterns in the random
Reference dependence
Also called framing & means that we are influenced by context and the way things are presented to us
Repeated coactivation
Forges direct links in memory between triggers and responses representations (associative learning)
representative heuristic
judging that something belongs to a category by looking at how closely they resemble the typical member of it & without considering real probability
salience bias
more likely to focus on items or information that are more prominent and easier to process & and ignoring others
Sludge
Increasing friction to get in the way of people doing something
Status quo bias
When we are facing possible losses or difficult decision & we have a tendency to inaction & avoiding change and staying with how things are currently.
stereotypes
an examples of representative heuristics - preconceived notion about specific groups and representing every member this way
Subjective value
utility that each person assigns to the object or outcome
Sunk Cost fallacy
When we continue a behavior or stick with a decision & because of a previously invested resource (time & money or effort)
superstition
engaging or avoiding behaviors based on irrational beliefs that the behavior could influence the outcome.
surviorship bias
focusing on people or things that have succeeded and overlooking failures
Tempral discounting or present bias
focusing on present costs and devaluing future outcomes
Von Restorff effect
when something stands out & it attracts your attention & and you remember it better
What are 6 ways to reduce the pain of paying?
Fixed fees & decoupling & prepayments & splitting & simplifying and token payment systems
What are the 6 Cialdini principles?
1 - Liking & 2 - Reciprocity & 3 - Commitment and consistency & 4 - social proof & 5 - Authority & 6 - Scarcity
What comes under prospect theory?
Loss aversion and reference dependence
What comes with multi-tasking in modern human? (3)
Continuous partial attention & shortned attention spans and stimulation addiction
What concepts come under loss oversion? (5)
Non Consistent risk preferences / Possibility & certainty effect / Endowment effect / Sunk cost fallacy / Status quo fallacy
What do negative emotions do?
Limit your focus but foster systematic throught
What do positive emotions do?
Change the bounds of your mind & widening the possibilities that you see and more cognitive flexibility & but analysis is more shallow
what does anger do?
Promoting risk taking & impultivity & less perception of danger and relying more on stereotypes
what does fear do?
promotes change and action & but also selfishness
what does loneliness and low self-esteem cause…
need to feel seen & connected and relevant and increased stress and anxiety & more negative emotions
What does pain do?
Reduced cognitive flexibility and ability to process new information so inadaptability
What does sadness do?
Promotes empathy generosity & deep situation analysis & but also rumination and impatience
What does scarcity activate? (4)
Loss aversion & anticipated regrey & status quo bias & psychological reactance
What is in reference dependence? (5)
WYSIATI & contract principle & diminishing sensitivity & mental accounting & anchoring
What is the magic word?
FREE
What is the pain of paying?
Spending money can cause the bain’s pain center to activate -> even more with the saliency and timing of payment
When are consumer habits strongest?
When under time pressure & distracted or tired
WYSIATI
What you see is all there is & making decision with incomplete evidence
Abilene paradox
every member in a group assume the majority abides by a behavior, and does it to follow. However, no one is actually contempt with the outcome
Peak End Rule
people judge an experience mostly by how it felt at its emotional peak
Experiencing self
Experiences each
moment as it comes.
Remembering self
Recalls the emotional
peaks and the end of
an experience.
